/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES ORDISSEMINATION IN THE UNITED STATES/

TORONTO, June 12, 2012 /CNW/ - Intact Financial Corporation (TSX:IFC)
announced today that it intends to issue $200million principal amount of unsecured medium term notes (the "Notes").
The Notes will be direct unsecured obligations of IFC and will rank
equally with all other unsecured and unsubordinated indebtedness of
IFC. The Notes will bear interest at a fixed annual rate of 5.16%
until maturity on June 16, 2042.

IFC intends to use the net proceeds from the offering of Notes towards
reducing its current term loan indebtedness under its existing credit
facility and funding a portion of the purchase price for its previously
announced acquisition of all of the issued and outstanding shares of
JEVCO Insurance Company from The Westaim Corporation (the
"Acquisition"). The closing of the Acquisition is expected to occur in
the fall of 2012 and is subject to receipt of required competition and
insurance regulatory approvals, approval by the shareholders of Westaim
and the satisfaction of certain closing conditions. The offering is
not conditional upon closing of the Acquisition; if the Acquisition is
not completed, the net proceeds from the offering of Notes will be used
to repay the term loan indebtedness outstanding under IFC's existing
credit facility and for general corporate purposes.

The Notes, offered on a best efforts basis through a syndicate led by
CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities
Inc., are expected to be issued on June 15, 2012. Details of the
offering will be set out in a pricing supplement which IFC intends to
file in Canada and which will be available on the SEDAR website for IFC
at www.sedar.com.

The securities to be offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended ("U.S. Securities
Act"), and may not be offered or sold in the United States or to or for
the account or benefit of U.S. persons absent registration or an
applicable exemption from the registration requirements of the U.S.
Securities Act. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy such securities in the
United States or in any other jurisdiction where such offer is
unlawful.

About Intact Financial Corporation

Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada.
Intact offers home, auto and business insurance through Intact
Insurance, belairdirect, Grey Power and BrokerLink.

Forward-looking statements

Certain of the statements included in this press release about IFC's
current and future plans, expectations and intentions, results, levels
of activity, performance, goals or achievements or any other future
events or developments constitute forward-looking statements. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely", "potential" or the negative or other
variations of these words or other similar or comparable words or
phrases, are intended to identify forward-looking statements.

Forward-looking statements are based on estimates and assumptions made
by management in light of our experience and perception of historical
trends, current conditions and expected future developments, as well as
other factors that management believes are appropriate in the
circumstances. Many factors could cause IFC's actual results,
performance or achievements or future events or developments to differ
materially from those expressed or implied by the forward-looking
statements, including, without limitation, the following factors: IFC's
ability to implement its strategy or operate its business as management
currently expects; its ability to accurately assess the risks
associated with the insurance policies that IFC insurance subsidiaries
write; unfavourable capital market developments or other factors which
may affect IFC's investments and funding obligations under its pension
plans; the cyclical nature of the property and casualty insurance
industry; management's ability to accurately predict future claims
frequency; government regulations designed to protect policyholders and
creditors rather than investors; litigation and regulatory actions;
periodic negative publicity regarding the insurance industry; intense
competition; IFC's reliance on brokers and third parties to sell its
products to clients; IFC's ability to successfully pursue its
acquisition strategy; IFC's ability to execute its business strategy;
the terms and conditions of, and regulatory approvals relating to, the
Acquisition; timing for completion of the Acquisition; synergies
arising from, and IFC's integration plans relating to the Acquisition;
IFC's financing plans for the Acquisition; management's estimates and
expectations in relation to MCT and debt to capital position, as
applicable; various other actions to be taken or requirements to be met
in connection with the Acquisition; IFC's participation in the Facility
Association (a mandatory pooling arrangement among all industry
participants) and similar mandated risk-sharing pools; terrorist
attacks and ensuing events; the occurrence of catastrophic events;
IFC's ability to maintain its financial strength ratings and issuer
credit ratings; IFC's ability to alleviate risk through reinsurance;
IFC's ability to successfully manage credit risk (including credit risk
related to the financial health of reinsurers); IFC's reliance on
information technology and telecommunications systems; IFC's dependence
on key employees; general economic, financial and political conditions;
IFC's dependence on the results of operations of its subsidiaries; the
volatility of the stock market and other factors affecting IFC's share
price; and future sales of a substantial number of its common shares.

These factors are not intended to represent a complete list of the
factors that could affect us. These factors should, however, be
considered carefully. All of the forward-looking statements included in
this press release are qualified by these cautionary statements.
Although the forward-looking statements are based upon what management
believes to be reasonable assumptions, IFC cannot assure investors that
actual results will be consistent with these forward-looking
statements. When relying on forward-looking statements to make
decisions, investors should ensure the preceding information is
carefully considered. Undue reliance should not be placed on
forward-looking statements made herein. IFC and management have no
intention and undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.